The multi-play service market in Japan is poised for substantial growth, with the total revenue projected to reach $36 billion by 2027, marking a 4 percent Compound Annual Growth Rate (CAGR) from $29.5 billion in 2022.
The report said this upward trajectory is attributed to the surging demand for blended services and a growing number of multi-play households within the country, as revealed by GlobalData’s Japan Multiplay Forecast (Q1 2023).
The forecast indicates that the average monthly household expenditure on multi-play service bundles is expected to increase from $55.26 in 2022 to $59.13 in 2027. This rise is primarily fueled by the increasing adoption of double-play and triple-play service bundles leveraging fiber optic (FTTH/B) broadband services, coupled with plans featuring premium benefits such as gigabit speeds and unlimited access to music platforms.
Double-play services are expected to maintain their position as the most popular multi-play service category throughout the forecast period. The share of total multi-play households utilizing double-play services is predicted to climb from 62.6 percent in 2022 to 66.1 percent in 2027. Concurrently, triple-play and quad-play services are anticipated to experience growth in their share of total multi-play households, rising from 15.9 percent and 2.7 percent in 2022 to 20.3 percent and 4.1 percent in 2027, respectively.
Kantipudi Pradeepthi, a Telecom Analyst at GlobalData, highlights that the expansion of broadband network coverage in Japan, especially the increased availability of high-speed fiber-optic broadband services, will significantly boost the adoption of multi-play packages in the country.
KDDI is set to lead the double-play and quad-play markets in terms of subscription share throughout the forecast period, propelled by promotional service bundles encompassing fixed broadband, telephony, pay-TV, and mobile services. These bundles, coupled with value-added benefits and discounted rates, are driving customer acquisition. On the other hand, NTT is projected to maintain its lead in the triple-play segment in terms of households through 2027.